The NSW public sector's efficient use of resources affects the delivery of services to and the welfare of its residents. Increasing service delivery needs must be balanced against limited resources. The NSW Government must ensure capital related resource allocation decisions are well timed, offer value for money, provide sound management of risks and are consistent with Government priorities and objectives.
A business case provides a base for change by examining total lifecycle costs, benefits, risks and implementation requirements. It is also a reference for the procurement and implementation of a project or program. Critical parameters such as cost, schedule, quality, social and environmental issues are documented demonstrating agency capability for timely delivery of the project or program.
The purpose of these Guidelines for Capital Business Cases is to strengthen the framework and identify the requirements for all public sector agencies to undertake business cases on a consistent basis to support the:
◼ Contribution to the strategic priorities of Government as contained in the NSW State Plan and the NSW State Infrastructure Strategy.
◼ Prioritisation of resources to meet Government service delivery objectives or priorities.
◼ Efficient, effective delivery of planned services by agencies.
The systematic application of these Guidelines will improve resource allocation decisions and the capacity of agencies developing and delivering new capital related services.
These Guidelines provide:
1 Guidance on preparing a capital business case and the standard of evidence required
2 References to existing NSW Government policy papers, guidelines and circulars
3 Key principles for preparing a business case
4 Advice on how to:
◼ develop the case for change (section 3)
◼ analyse the proposal (section 4)
◼ implementation of the proposal (section 5)
5 Templates for preparing:
- Preliminary business cases which demonstrate the rationale for a service need before project planning proceeds too far (Appendix 1)
- Final business cases which demonstrate the case for change, value for money and capacity of the agency to implement the project (Appendix 2).
Applying these Guidelines will allow agencies submitting business cases to demonstrate that their proposal is the best option to:
◼ achieve the strategic objectives or priorities of Government
◼ use the proposed resources
◼ procure, implement and maintain the planned services.
The benefits to agencies and the Government include:
• Standardising the content requirements and information base to improve resource allocation decisions, assessing relative priorities, competing demands and confirming affordability.
• Reinforcing longer term State capital expenditure forecasting and strategic fiscal planning, and considering future demand pressures and longer term prevention and early intervention strategies.
• Demonstrating links to the State Plan and the State Infrastructure Strategy, Asset Strategy Plans, Results and Services Plans, Statements of Business Intent, Statements of Corporate Intent and ICT Frameworks.
• Broadening the range of options by considering alternatives to new capital including better asset utilisation, early intervention and demand management.